Understanding Consumer Behaviour

Understanding consumers: the key questions Who is important? What are their choice criteria? How do they buy? Customers Where do they buy? When do they buy?

The Decision-making Unit Initiator Influencer Decider Buyer User Gatekeeper

Virgin Media Virgin Media targets its advertising at all members of the household decision-making unit, with the customer benefit of multiple online usage.

The consumer decision-making process Need recognition/problem awareness Information search Evaluation of alternatives Purchase Post-purchase evaluation of alternatives

Evaluation and purchase models High involvement: the Fishbein and Ajzen model of reasoned action Personal beliefs Attitudes Purchase intentions Purchase Normative beliefs Subjective norms Low involvement: the Ehrenberg and Goodhart repeat purchase model Repeat Purchase Awareness Trial

Choice criteria used when evaluating alternatives Technical Reliability Durability Performance Style/looks Comfort Delivery Convenience Taste Social Status Social belonging Convention Fashion Personal Self-image Risk reduction Ethics Emotions Economic Price Value for money Running costs Residual value Life-style costs

Audi Audi advertises both the fuel efficiency and responsible credentials of its TT TDI model.

Influences on consumer purchasing behaviour The buying situation Personal influences Social influences information processing motivation beliefs and attitudes personality lifestyle lifecycle culture social class geodemo-graphics reference groups Consumer

Determinants of the extent of problem solving Self-image Perceived risk Social factors Hedonism Level of involvement Time pressure Extent of problem solving Differentiation and number of alternatives

The consumer decision-making process and level of purchase involvement Stage Low Involvement High Involvement Need recognition/ problem awareness Minor Major, personally important Information search Limited search Extensive search Evaluation of alternatives and the purchase Few alternatives evaluated on few choice criteria Many alternatives evaluated on many choice criteria Post-purchase evaluation of the decision Limited evaluation Extensive evaluation including media search

Maslow’s hierarchy of needs

a symbol of achievement and its rewards Rolex Rolex watches: a symbol of achievement and its rewards

Lifecycle stages Middle-aged divorced no children Young divorced no children Middle-aged married no children At home single Young couple no children Young parents Middle-aged parents Empty nester married working Empty nester married retired Solitary retired On own young Young divorced with children M-aged divorced with children M-aged divorced no dep’nt children On own middle-aged

Social class categorization

Reference Groups Membership groups Aspirant groups

Core Reading Core reading to support this topic can be found in Chapter 4 of your recommended text